EMBASSY ABU DHABI WELCOMES TRADE INSTITUTION-BUILDING

C O N F I D E N T I A L ABU DHABI 000497 SIPDIS STATE FOR NEA/ARP AND NEA/RA E.O. 12958: DECL: 01/28/2013 TAGS: EAID ETRD ECON PREL TC SUBJECT: EMBASSY ABU DHABI WELCOMES TRADE INSTITUTION-BUILDING IN THE UAE REF: STATE 23998 ¶1. (U) Classified by Ambassador Marcelle M. Wahba for reasons 1.5 (b) and (d). ¶2. (C) Post concurs with NEA that a regional conference, followed by a focused bilateral program to address the UAE's specific trade-related concerns, is the best approach to trade institution-building in the Gulf. The regional conference should avoid detailing specific problems of the UAE (or those of any GCC country, for that matter, "naming and shaming" in public would be counterproductive in our view),but rather should emphasize the benefits of reducing barriers to trade. Such a conference might also usefully address issues arising from the implementation of the GCC Customs Union in terms of WTO obligations, and standards issues. Given the UAE's reputation as the trading hub of the region, it is possible that the UAEG would cover the costs of training/travel for trade experts, host training sessions at UAEG expense, and even propose a permanent regional training facility in the UAE for trade-related programs. ¶3. (C) A long-term presence in the region of an American trade expert would best serve our interests -- the representative could educate the UAEG on its specific WTO obligations, as well as explain U.S. positions in multilateral negotiations. (Note: The UAEG is particularly interested in our position on Trade in Services in aluminum, petrochemicals, and textiles. End note.) We sense that the UAEG wants both to support the United States in multilateral fora, as well as expand our bilateral trading relationship, but does not understand its own commitments, the technical aspects of WTO Agreements, or the intricacies of our domestic requirements fully. ¶4. (C) We should aim to lash up with the WTO's International Trade Center (ITC) and the Arab Monetary Fund -- headquartered in Abu Dhabi -- to build upon those organizations' existing programs for trade institution- building. The AMF, in particular, manages an active training schedule throughout the year, but does not have indigenous expertise. The AMF signed an agreement with the WTO's ITC in 2001 to provide trade-related training and the necessary experts from Geneva to conduct the training. The seminars in 2002 were well attended by all 21 countries of the AMF's membership. ¶5. (C) UAE officials have welcomed targeted WTO training -- especially in Trade in Services and TRIPs -- and raised the issue at the U.S.-UAE Strategic Dialogue in Washington in November. Post believes that the UAE could also benefit from training in Government Procurement and Intellectual Property Rights, specifically. A better understanding of agreements related to Customs Valuation Methods, Rules of Origin, and Standards as Non-Tariff Barriers to Trade are also critical to the UAE, but are ideal for regional training fora given the realization of the GCC Customs Union on January 1. ¶6. (C) We note that the WTO also provides non-trade related training consistent with our other MEPI goals -- fostering workers' rights and protection, supporting workforce skills development, and revamping/updating of the local commercial and agency laws and courts -- which may also be applicable in the UAE. Wahba